Contact us for a complimentary broker opinion of value for your off-market Dairy Queen NNN property for sale or Dairy Queen ground lease property for investment, specifically tailored to support your 1031 exchange requirements. This valuable assessment will provide you with the necessary clarity to make informed decisions regarding the sale of your Dairy Queen NNN property or the inclusion of a Dairy Queen ground lease property in your investment portfolio. As specialists in working with 1031 exchange buyers seeking off-market Dairy Queen properties, we are dedicated to delivering competitive offers with reduced fees to help you maximize your investment returns.
As of January 2023, Dairy Queen operates over 7,000 restaurants across various countries and territories. More than 4,500 restaurants are located in the United States and Canada.
In 2022, Dairy Queen achieved total revenue of approximately $4.5 billion. The net income for the same period amounted to around $300 million.
Dairy Queen is dedicated to advancing its global presence. Throughout 2023, the company’s strategy entails opening over 500 new restaurants worldwide. Additionally, Dairy Queen is actively exploring innovative technologies, such as digital ordering systems and delivery services, to enhance customer experience.
Approximately 85% of Dairy Queen restaurants operate under the franchise model, with the remaining 15% being corporate-owned. Potential franchisees generally commit to an initial franchise fee ranging from $25,000 to $35,000, along with a continuing royalty fee based on a percentage of sales.
Dairy Queen’s inception dates back to 1940 in Joliet, Illinois. The company’s name reflects its dairy and frozen dessert industry roots. Dairy Queen is renowned for its iconic Blizzard treat and soft-serve ice cream. It stands as one of the prominent fast-food restaurant chains globally. Dairy Queen operates as a subsidiary within Berkshire Hathaway, a multinational conglomerate.
Dairy Queen’s origin dates back to 1940 when founders John Fremont “J.F.” McCullough and his son, Alex McCullough, introduced the first Dairy Queen store in Joliet, Illinois. The store’s launch began an iconic legacy in the frozen dessert industry. Over time, Dairy Queen expanded its menu offerings, gaining popularity for its signature Blizzard treat and soft-serve ice cream. The brand’s dedication to excellence and innovation has played a pivotal role in its achievements.
Investing in Dairy Queen’s ground lease and triple net (NNN) lease properties offer compelling reasons:
Leveraging Dairy Queen’s strong brand recognition and reputation, these properties offer a consistent income stream. Ground and NNN leases provide stable cash flows over the long term.
Dairy Queen’s renowned brand minimizes the risk of tenant vacancy or lease default, ensuring property stability.
With ground and NNN leases, tenants handle property maintenance and expenses, reducing the landlord’s management obligations.
Long lease durations with embedded rent escalations contribute to predictable income and potential rental growth.
Strategic placements of Dairy Queen locations in high-traffic areas have the potential to enhance property value, offering the prospect of capital appreciation.
1. Reliable income stemming from a well-established brand.
2. Established tenant presence lowers vacancy and lease default risks.
3. Landlords’ management responsibilities are minimized.
4. Long lease terms ensure stability and potential income growth.
5. Potential property value appreciation in prime locations.
1. LUncertainty upon lease term expiration for lease renewal.
2. Dependency on Dairy Queen’s operational success and challenges.
3. Profitability is influenced by market saturation and competition.
4. Limited control over property decisions.
5. Inherent economic and market risks associated with real estate investments.
In-depth research is vital, considering location, lease terms, tenant strength, and investment strategy. Engaging with real estate professionals and financial advisors is recommended to align your investment approach with your objectives and risk tolerance.